- 10 Marks
AAA – Nov 2023 – L3 – Q1c – The Audit Approach, Practice Management
Explain five responsibilities of engagement partners for managing and achieving quality on audits as per ISA 220.
Question
You have recently been employed by a small firm of Chartered Accountants “Osei Peprah and Associates”. The firm has been in operations since 1985 and the two main partners, Mr. Osei and Mr. Peprah, are above 70 years old. They are mostly inactive in the main audit work and rely on three audit trainees and one Audit Senior for the performance of the audit engagement for their 30 clients. The three audit trainees were recently employed after their national service with the firm. You are the only qualified accountant besides the partners.
On your first meeting with Mr. Osei, he explained that the firm needs to improve its quality control procedures and audit working papers. He highlighted that the recent audit of the firm’s activities by the Quality Assurance Monitoring department of ICAG revealed several quality control issues as well as non-compliance with ISAs in their audit engagements.
Required: In accordance with ISA 220 (Revised): Quality Management for an Audit of Financial Statements, explain FIVE (5) responsibilities of the engagement partners for managing and achieving quality on audits.
Find Related Questions by Tags, levels, etc.
- Tags: Engagement Partners, ISA 220, Quality control
- Level: Level 3
- Topic: Practice management, The audit approach
- Series: NOV 2023